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Another steep increase in fuel prices

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The petrol price will increase with 91 cents per litre and diesel will increase by over 50c per litre on Wednesday.

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THE PETROL price will go up by 91 cents per litre for both grades and diesel will increase by between 54 and 55 cents per litre in August, the Energy Department said.

In a statement, the department said that based on current local and international factors, petrol (both 93 and 95) will increase with 91 cents.

Diesel (0.05% sulphur) will increase with 55.58 c/l and diesel (0.005% sulphur) will increase by 54.58 c/l.

Illuminating Paraffin (wholesale) increases with 50 c/l; SMNRP for IP increases by 67 c/l; and maximum LPGas Retail Price will increase 226 c/kg.

“The fuel prices schedule for the different zones will be published on Tuesday,” the department said.

South Africa’s fuel prices are adjusted on a monthly basis and are informed by international and local factors. it said adding that the international factors included that South Africa imports both crude oil and finished products at a price set at the international level.

For the period under review, the average Brent Crude oil price increased from 73 USD to 74 USD per barrel, the department said.

“The American Petroleum Institute reported that the decline in the crude oil inventories reached a total of nearly 54 million barrels and this contributed to higher oil prices during July 2021,” the department said.

“The movement in international refined petroleum product prices followed the increasing trend in crude oil prices. This led to higher contributions to the Basic Fuel Price of petrol by 48.29 c/l, diesel by 16.37 c/l and 15.53 c/l and illuminating paraffin by 17.76 c/l.”

On average, the Rand depreciated against the US Dollar (from 13.92 to 14.54 Rand per USD) during the period under review when compared to the previous one, said the department.

It said this led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 43.73 c/l, 32.37 c/l and 31.42 c/l respectively.

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